August 20, 2025 | Reuters |
Coconut oil prices in Asia have soared to record highs, tripling in India over two years, as production shortfalls collide with surging demand. Once a kitchen staple, the oil has become increasingly unaffordable for consumers, who are turning to alternatives like sunflower oil for daily cooking.
The rally, which began in 2024, was triggered by erratic weather, aging trees, pests, and underinvestment, leaving output stagnant at around 3.67 million tons annually. Global prices hit nearly $3,000 per ton, while India’s domestic prices reached 423,000 rupees ($4,840) per ton. The International Coconut Community expects prices to remain above $2,500 in the near term, far higher than 2023’s average of $1,000.
Shortages are aggravated by farmers harvesting coconuts early for their increasingly popular water, reducing supply for oil and copra. The health-driven boom in coconut water consumption has fueled further pressure on mature nut availability.
Export patterns are shifting: Indonesia’s coconut oil shipments fell 15% in early 2025, while exports of desiccated coconut and coconut-based products rose 58%. Industry groups in India and Indonesia are calling for policy changes, including easing imports or suspending exports, to stabilize markets. With new plantations needing years to yield, experts warn high prices may become the new normal.
